Page 81 - Test 4 Slides - Individual Class Slides

INDIVIDUALS & RING FENCING

Tax Credits

• Medical credits

• Contributions to medical aid funds, as well as amounts paid for
medical expenses not covered by the medical aid

• Medical Credits system

• s6A: Medical Scheme Fees
• Monthly tax credits based on dependents:
• R303 for a single taxpayer

• R606 for a taxpayer and 1 dependent
• R204 for each additional dependent

• s6B: Additional medical Expenses

• Sum of amounts not recoverable from Medical Aid
• >65 years or family member has a disability:
• 33% of [medical contributions –3 x 6A Credit + QME]
• Other

• 25% of [(medical contributions –4 x 6A Credit) + QME –7.5% of taxable
income (Excluding retirement fund benefits)]

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